VALUE-ADDED CORNER
USDA providing $22.7 million in
Value-Added Producer Grants
SDA in September announced the selection
of 162 recipients in 40 states and Puerto Rico
to receive $22.7 million through the Value-
Added Producer Grant program.
“These grants support farm families in
rural America by helping them market their commodities and
increase their financial returns,” said then-Agriculture
Secretary Mike Johanns. “I'm also pleased that some of these
funds will help develop alternative fuels from renewable
energy sources as part of President Bush's comprehensive
national energy policy.”
Approximately one-third of the grants, 56, will go to
recipients who requested $50,000 or less in federal assistance.
One of the largest awards went to Sunsweet Growers in
California, where USDA Rural Development State Director
Ben Higgins presented the co-op with a $300,000 check to
assist the Yuba City-based cooperative in marketing a new
“light” version of its “PlumSmart” juice drink. Sunsweet is a
grower-owned marketing cooperative of more than 400
members, well known for dried-plum products. The
cooperative represents more than one third of the dried plum
market worldwide.
“In today’s global marketplace, California’s agricultural
cooperatives understand that they need to stay on the cutting
edge of innovation to remain competitive,” Higgins said.
“This grant will help improve the competitiveness of
Sunsweet Growers by supporting innovative new production
and marketing strategies.”
Since October was national Cooperative Month, Higgins
noted that California is home to more than 160 cooperatives
with gross sales of more than $7 billion annually, and that
farmer-owned co-ops nationally had sales of $126 billion in
2006. USDA Rural Development has invested more than
$9.3 million in California cooperatives alone since 2001.
Other examples of the VAPG awards include:
- Quality Dairy Goat Producers Cooperative of Chilton,
Wis., was selected to receive $37,500 to help it market
quality goat milk to high-end cheese companies.
- Krouse Ranch Inc., Grants Pass, Ore., will receive an award
of $17,650 to develop a feasibility study to process and
market cut and dressed beef through local farmer-chef
connection programs.
- MinnErgy LLC, Winona, Minn., was selected for an award
of $300,000 to fund the initial startup for an ethanol plant.
- Orlicek Farm, Stuttgart, Ark., was selected to receive
$98,500 to determine the feasibility of marketing biofuels
from a facility in Arkansas.
Value-Added Producer Grants may be used for planning
activities or to provide working capital to market value-added
agricultural products and farm-based renewable energy
projects. A value-added product is created when a producer
takes an agricultural commodity, such as milk or vegetables,
and processes or prepares it in a way that increases its value
to consumers.
USDA Rural Development has committed more than
$158 million to value-added agricultural investments since
2001.
Below is a list of cooperatives that received VAPGs in
2007. Many producer-owned LLCs that operate on co-op
principles were also among the grant recipients. A complete
list of grant recipients is available at USDA Rural
Development's Web site: http://www.rurdev.usda.gov.
